Sources: Maddix Capital, Lehi, Utah; CP staff
A growth-stage private equity firm based outside Salt Lake City, Maddix Capital, has acquired a controlling stake in AK Masonry, citing plans to expand the South Jordan, Utah contractor’s services and reach. The firm worked with Hillcrest Bank, a division of NBH Bank, to secure partial financing to complete the deal.
“AK Masonry exists to fix what’s broken in a fragmented market of the construction industry,” says Founder and CEO Alex Short, who remains at the helm. “We’ve already achieved great success at the local level, but this investment from Maddix together with our ongoing relationship with Hillcrest Bank will allow us to increase our impact and output dramatically. Our deep industry relationships and expertise—combined with Maddix’s prowess in mergers & acquisitions, strategic planning, and scaling their own businesses as operators—will make us a force to be reckoned with. We aim to help other promising businesses like ours overcome growth plateaus and achieve major milestones through our proven model. This new infusion of capital will help us make that goal a reality.”
AK Masonry has scaled organically for nearly two decades, he adds, having grown from a bootstrapped small business to one that books over $30 million in annual revenue. The Maddix Capital investment harnesses the power of the companies’ combined resources, teams, and expertise—presenting a timely opportunity for AK Masonry to begin acquiring and rolling up other similar businesses that show growth potential.
“Our team shares a deep commitment to this industry, and our goal is to offer skilled craftsmen an entry point into this trade,” Short affirms. “We also want our business and story to serve as important reminders that not all paths to a successful career or a six-figure income require a college diploma. There is real power and massive earning potential in the essential (and often-overlooked) service trades like ours, and we want to open that door for more promising professionals and artisans to enter.”
The synergy between AK Masonry, Maddix, and Hillcrest Bank was a natural fit from the start, he adds, given the success Maddix Founder and General Partner Jesse Silva had scaling his own service-based business and executing several highly profitable acquisitions. This shared experience is what drew AK Masonry to Maddix’s table, but it was the unique vision and relatability of Silva and his team that sealed the deal, coupled with the investor’s core thesis: The entrepreneur can and should be at the forefront of a fund’s focus in each portfolio company it takes on.
“It quickly became clear to us that Alex and his team have built something special here,” observes Silva, who joins the AK Masonry board. “Beyond the company’s growing position in the local market over the years, I was drawn to the fact that we both share a track record of building businesses from scratch within the professional services domain. Both of our teams believe this kind of offering is what the construction industry needs, and we are excited to join forces to help AK Masonry realize its potential as the premier name in the space.”